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Auto Component Makers Gearing up To Resume Operations

While few auto component manufacturers in the green zone are planning to restart operations, others operating in orange zones are seeking permission to resume their work again. Needless to say, those in the red zone won't be allowed restart operations yet.

Auto Component makers in orange and green zones are preparing to resume work expand View Photos
Auto Component makers in orange and green zones are preparing to resume work

Highlights

  • Component makers in orange, green zones are preparing to resume work
  • Those in the red zone won't be allowed to start operations yet
  • Some automakers are planning to start with 20-30 per cent production

The entire supply chain in the India auto sector has been disrupted after automakers had to shut operations in accordance to the lockdown called to prevent the spread of the novel Coronavirus. As automakers are preparing to resume both production and sales operations post lockdown 3.0, to get the supply chain in place and functioning is the need of the hour because how will you assemble an automobile without components! While few auto component manufacturers in the green zone are planning to restart operations, others operating in orange zones are seeking permission to resume their work again. Needless to say, those in the red zone won't be allowed carry on yet.

Also Read: Coronavirus Lockdown: Automakers Issue Precautionary Guidelines To Dealers Before Resuming Operations

Speaking to carandbike, Vinnie Mehta, Director General, Automotive Component Manufactures Association (ACMA) said, "The auto components sector is in the process of taking permissions to resume operations, in certain cases it is taking a bit of time. Those with permission are engaged in maintenance of their machines & equipment as also preparing to put in place safety procedures/protocols to receive their employees. Resumption of production will depend on the schedules received from the customers. We do not expect significant capacity utilisation in the short term as the customer demand at this juncture is rather muted."

Prashanth Doreswamy, Country Head of Continental India and Managing Director, Continental Automotive India said, "After the government relaxed the lockdown regulations for the manufacturing sector, we have gradually resumed our operations with 30 percent of our workforce at our manufacturing facilities and partly aided by our automation processes that were already in place. Apart from resuming the production, our highest priority is to secure the supply chain and meeting customer requirements. The automotive supply chain is one of the robust, fast-evolving, and lean processes across industries. Our ERP systems are integrated across countries and regions, which help to retrieve information quickly and integrate demand management starting from OEMs and automatic discharge of orders etc. Our well-equipped inventory management and warehousing help in optimizing the processes."

Also Read: India's Automakers Seek Tax Cut To Boost Demand After Coronavirus Hit

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Some automakers who already received huge bookings for some models before the lockdown are planning to start with 20 - 30 per cent production this month itself and are waiting to hear from suppliers when they will operations again. According to our sources, major automakers like Maruti Suzuki, Mahindra, Tata Motors and MG Motor India have also suggested precautionary guidelines to its suppliers to be implemented in the work place as majority of component manufacturers fall under MSMEs and don't have dedicated research team to tackle such situations. The production numbers wil also depend on the numbers of dealerships operating during the crisis situation and those falling in the red zone still won't be allowed to operate and footfalls are also expected to go down drastically in these circumstances.

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